Friday 29 Mar 2024
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KUALA LUMPUR (Sept 20): Petroliam Nasional Bhd (Petronas) posted an 8% increase in its net profit for the second quarter ended June 30, 2019 (2QFY19), to RM14.7 billion, from RM13.6 billion a year earlier, as the ringgit weakened against the US dollar.

Revenue for the quarter was marginally lower at RM59.1 billion, compared with RM59.2 billion in the previous year's corresponding quarter.

The marginal decline in its topline was attributed to lower average realised prices for petroleum products and liquefied natural gas (LNG), which was partly offset by higher sales volume for crude oil and condensates, as well as LNG, coupled with the weakening ringgit against the greenback.

For the first half of the year (1HFY19), net profit rose 9% to RM28.9 billion from RM26.6 billion a year earlier, on the back of higher revenue of RM121.1 billion against RM117.2 billion in 1HFY18.

During the period, Petronas made RM15.7 billion in capital expenditure (capex), largely attributable to upstream projects.

Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said the group's expenditure year-to-date is slightly behind its budgeted capex for the year, but added that investments will pick up in the second half of the year.

"Our year-end projection remains at RM50 billion and we will catch up in the second half of the year. We have about RM35 billion in investments to be made, and it's about a 50:50 split between Malaysian and international investments," he said during a media briefing on the group's performance today.

Wan Zulkiflee attributed the delay in capex spending to certain agreements that could only potentially be finalised in the second half of the year.

On the group's Refinery and Petrochemical Integrated Development (RAPID) project, he said the US$27 billion Pengerang Integrated Complex (PIC) is on track to achieve commercial operations in the fourth quarter of 2019, as overall progress stood at 99.7% as at June 30.

He also touched on the dividend expectations for next year, expecting a lower dividend payment to the government in 2020 compared to the RM54 billion paid in 2019.

"Petronas continues to deliver a healthy financial performance for the first half of 2019 despite persistent challenging market conditions.

"Our growth journey will continue to be guided by our three-pronged strategy and we will progress with our efforts to build the organisation's resiliency in facing anticipated prolonged market volatility and changing energy landscape," he said.

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